Chicago Investment Adviser Robert Lunn Sentenced to 3 Years for Taking Out Bank Loans in His Clients' Names Without Their Knowledge

Case from 2014–2017 (U.S. Attorney's Office latest release: March 22, 2016; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Robert J. Lunn, a Chicago investment adviser who did business as Lunn Partners LLC, was sentenced on March 22, 2016, to three years in federal prison for defrauding Oak Brook-based Leaders Bank and two of his clients out of more than $3.2 million, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. He was ordered to pay more than $1.16 million in restitution to Leaders Bank and $400,000 to one of the clients.

How the scheme worked

According to evidence at trial, as described by prosecutors [1]:

1. Inflated credit line: Lunn got a $480,000 corporate credit line from Leaders Bank in May 2001, then raised it twice in 2004, to $1.32 million, by submitting financial statements falsely claiming he personally owned millions of dollars in stock.
2. Loans in clients' names: He told the bank that two clients, a former professional athlete and a retired venture capitalist, knew about loans he arranged for their benefit. Neither did.
3. A false purpose: In September 2002 he arranged a $1.4 million unsecured loan, saying one client would use it to buy an interest in an airplane.
4. The money: He used nearly all the proceeds himself and to pay some of his other clients.

Prosecutors said he went to great lengths to hide the loans from the bank and both clients. The bank ultimately lost more than $2.7 million [2].

The person sentenced

Robert J. Lunn, 66 at sentencing, of Chicago [1]

• Charge (May 30, 2012): five counts of bank fraud [3].
• Verdict (Oct. 17, 2014): a jury convicted him on all five counts [2].
• Sentence (March 22, 2016): 36 months in prison, imposed by U.S. District Judge Charles R. Norgle.
• Appeal: The Seventh Circuit affirmed his conviction on June 20, 2017 (No. 16-1791), rejecting claims about the judge's handling of his testimony and a requested jury instruction [3].
• Investigation: FBI Chicago, with the SEC's Chicago Regional Office participating in the prosecution.

Red flags

• Your adviser handles your borrowing as well as your investments, without copies coming to you.
• Bank or credit inquiries about loans you never requested.
• An adviser who discourages you from talking directly to your bank.

What to do if you're targeted

1. Pull your credit reports for free at annualcreditreport.com and look for loans you don't recognize.
2. Limit powers of attorney given to advisers, and require duplicate statements.
3. Report suspected adviser misconduct to the SEC at sec.gov/tcr.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Robert J. Lunn, Chicago	N.D. Ill. (Judge Norgle); 7th Cir. No. 16-1791	Convicted by jury Oct. 17, 2014; sentenced March 22, 2016, to 36 months; affirmed June 20, 2017	[1]-[3]

We have not found a source on any proceedings after the 2017 appeal.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Chicago Investment Advisor Sentenced to Three Years in Prison for Defrauding a Suburban Bank and Two Clients out of More Than $3.2 Million," March 22, 2016. https://www.justice.gov/usao-ndil/pr/chicago-investment-advisor-sentenced-three-years-prison-defrauding-suburban-bank-and
2. U.S. Attorney's Office, Northern District of Illinois, "Chicago Investment Advisor Convicted Of Defrauding Suburban Bank And Two Clients Of More Than $3.2 Million," Oct. 17, 2014. https://www.justice.gov/usao-ndil/pr/chicago-investment-advisor-convicted-defrauding-suburban-bank-and-two-clients-more-32
3. U.S. Court of Appeals for the Seventh Circuit, United States v. Robert J. Lunn, No. 16-1791, June 20, 2017. https://exa.ai/library/legal/opinion/z4gmgv05jky

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